Karen: This is PKF Texas: Entrepreneur's Playbook, and I'm Karen Love, Director of Practice Growth. I'm here today with Frank Landreneau, one of Houston's go-to international tax advisors. Welcome back to the Playbook, Frank.

Frank: Well, thanks, Karen. It's great to be here again.

Karen: In our international landscape, Frank, I've heard a lot about transfer pricing. Can you tell us what is that?

Frank: Yes. Simply put, transfer pricing is really the concept that related party transactions among a company group should be at fair market value.

Karen: Okay, and why is that important?

Frank: Well, because recently the IRS has reorganized themselves specifically to focus on the middle market companies, where before it was really an issue just for the big guys.

Karen: Okay. Well, say a business owner is watching this right now and they hear about transfer pricing. What should they do if they think they have an issue?

Frank: Well, one thing they can do is call us here at PKF Texas and we can review all their intercompany transactions and determine whether there's actually any exposure that they should be aware of.

Karen: Oh, wonderful. Well, that's a good answer. Thank you for being with us today.

Frank: Appreciate it.

Karen: Appreciate it. For more information about our international capabilities, visit pkftexas.com/internationaldesk. This has been a Thought Leader production, brought to you by the PKF Texas: Entrepreneur's Playbook. So tune in next week for another chapter.

PKF Texas is a premier middle-market CPA and advisory firm in Houston co-developing what's next with entrepreneurial minded businesses.